v3.23.3
EQUITY
 9 Months Ended
Sep. 30, 2023
Stockholders' Equity Note [Abstract]  
EQUITY EQUITYThe changes in Shareholders’ equity are as follows:
Ordinary sharesCapital in excess of par valueRetained earningsAccumulated other comprehensive lossShares held in trustTotal Eaton shareholders' equityNoncontrolling interestsTotal equity
(In millions)SharesDollars
Balance at January 1, 2023
397.8 $4 $12,512 $8,468 $(3,946)$(1)$17,038 $38 $17,075 
Net income— — — 638 — — 638 1 639 
Other comprehensive income, net of tax   132  132  132 
Cash dividends paid and accrued— — — (348)— — (348)(4)(352)
Issuance of shares under equity-based
   compensation plans		0.7 — (11)(1)— 1 (11)— (11)
Changes in noncontrolling interest of
   consolidated subsidiaries - net		— — — — — — — 1 1 
Balance at March 31, 2023
398.6 $4 $12,502 $8,757 $(3,814)$— $17,449 $36 $17,485 
Net income— — — 744 — — 744 1 745 
Other comprehensive income, net of tax    53  53  53 
Cash dividends paid— — — (344)— — (344)— (344)
Issuance of shares under equity-based
   compensation plans		0.4 — 52 (1)— (1)51 — 51 
Changes in noncontrolling interest of
   consolidated subsidiaries - net		— — — — — — — (1)(1)
Balance at June 30, 2023
399.0 $4 $12,554 $9,156 $(3,760)$(1)$17,953 $36 $17,988 
Net income— — — 891 — — 891 1 892 
Other comprehensive loss, net of tax— — — — (167)— (167)— (167)
Cash dividends paid— — — (343)— — (343)— (343)
Issuance of shares under equity-based
   compensation plans		0.4 — 51 (1)— — 50 — 50 
Changes in noncontrolling interest of
   consolidated subsidiaries - net		— — — — — — — (1)(1)
Balance at September 30, 2023
399.3 $4 $12,604 $9,703 $(3,927)$(1)$18,383 $36 $18,420 
Ordinary sharesCapital in excess of par valueRetained earningsAccumulated other comprehensive lossShares held in trustTotal Eaton shareholders' equityNoncontrolling interestsTotal equity
(In millions)SharesDollars
Balance at January 1, 2022
398.8 $4 $12,449 $7,594 $(3,633)$(1)$16,413 $38 $16,451 
Net income— — — 532 — — 532 1 533 
Other comprehensive income, net of tax   116  116  116 
Cash dividends paid and accrued— — — (331)— — (331)(2)(333)
Issuance of shares under equity-based
   compensation plans		0.8 — (22)(2)— — (24)— (24)
Changes in noncontrolling interest of
   consolidated subsidiaries - net		— — — — — — — (1)(1)
Repurchase of shares(0.6)— — (86)— — (86)— (86)
Balance at March 31, 2022
399.0 $4 $12,427 $7,707 $(3,517)$(1)$16,620 $36 $16,656 
Net income— — — 601 — — 601 — 601 
Other comprehensive loss, net of tax    (444) (444) (444)
Cash dividends paid— — — (323)— — (323)— (323)
Issuance of shares under equity-based
   compensation plans		— — 26 1 — — 27 — 27 
Changes in noncontrolling interest of
   consolidated subsidiaries - net		— — (1)— — — (1)— (1)
Repurchase of shares(0.7)— — (100)— — (100)— (100)
Balance at June 30, 2022
398.3 $4 $12,452 $7,886 $(3,961)$(1)$16,380 $36 $16,416 
Net income— — — 607 — — 607 1 608 
Other comprehensive loss, net of tax— — — — (522)— (522)— (522)
Cash dividends paid— — — (323)— — (323)— (323)
Issuance of shares under equity-based
   compensation plans		0.1 — 26 — — — 26 — 26 
Changes in noncontrolling interest of
   consolidated subsidiaries - net		— — — — — — — (2)(2)
Repurchase of shares(0.7)— — (100)— — (100)— (100)
Balance at September 30, 2022
397.7 $4 $12,478 $8,070 $(4,483)$(1)$16,068 $35 $16,103 
On February 27, 2019, the Board of Directors adopted a share repurchase program for share repurchases up to $5.0 billion of ordinary shares (2019 Program). On February 23, 2022, the Board renewed the 2019 Program by providing authority for up to $5.0 billion in repurchases to be made during the three-year period commencing on that date (2022 Program). Under the 2022 Program, the ordinary shares are expected to be repurchased over time, depending on market conditions, the market price of ordinary shares, capital levels, and other considerations. During the three and nine months ended September 30, 2023, no ordinary shares were repurchased. During the three and nine months ended September 30, 2022, 0.7 million and 2.0 million ordinary shares, respectively, were repurchased under the 2022 program in the open market at a total cost of $100 million and $286 million, respectively.
The changes in Accumulated other comprehensive loss are as follows:
(In millions)Currency translation and related hedging instrumentsPensions and other postretirement benefitsCash flow
hedges		Total
Balance at January 1, 2023$(3,264)$(810)$129 $(3,946)
Other comprehensive income (loss) before
    reclassifications		21 (8)37 50 
Amounts reclassified from Accumulated other
   comprehensive loss (income)		(10)21 (44)(32)
Net current-period Other comprehensive
   income (loss)		11 14 (7)18 
Balance at September 30, 2023$(3,253)$(796)$122 $(3,927)
The reclassifications out of Accumulated other comprehensive loss are as follows:
(In millions)Nine months ended September 30, 2023Consolidated Statements
of Income classification
Gains and (losses) on net investment hedges (amount excluded
  from effectiveness testing)
Currency exchange contracts$10 Interest expense - net
Tax expense— 
Total, net of tax10 
Amortization of defined benefits pensions and other
   postretirement benefits items
Actuarial loss and prior service cost(25)1
Tax benefit4 
Total, net of tax(21)
Gains and (losses) on cash flow hedges
Floating-to-fixed interest rate swaps9 Interest expense - net
Currency exchange contracts45 Net sales and Cost of products sold
Commodity contracts1 Cost of products sold
Tax expense(12)
Total, net of tax44 
Total reclassifications for the period$32 
1 These components of Accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 9 for additional information about pension and other postretirement benefits items.

Net Income Per Share Attributable to Eaton Ordinary Shareholders
A summary of the calculation of net income per share attributable to Eaton ordinary shareholders is as follows:
Three months ended
September 30		Nine months ended
September 30
(In millions except for per share data)2023202220232022
Net income attributable to Eaton ordinary shareholders$891 $607 $2,273 $1,741 
Weighted-average number of ordinary shares outstanding - diluted401.6 400.3 400.9 400.9 
Less dilutive effect of equity-based compensation2.2 1.9 1.9 2.0 
Weighted-average number of ordinary shares outstanding - basic399.4 398.4 399.0 398.9 
Net income per share attributable to Eaton ordinary shareholders  
Diluted$2.22 $1.52 $5.67 $4.34 
Basic2.23 1.52 5.70 4.36 
For the third quarter of 2023, all stock options were included in the calculation of diluted net income per share attributable to Eaton ordinary shareholders because they were all dilutive. For the first nine months of 2023, 0.1 million stock options were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive. For the third quarter and first nine months of 2022, 0.2 million and 0.1 million stock options, respectively, were excluded from the calculation of diluted net income per share attributable to Eaton ordinary shareholders because the exercise price of the options exceeded the average market price of the ordinary shares during the period and their effect, accordingly, would have been antidilutive.